By Anna Prior
International companies trading in New York closed higher
Friday, snapping back somewhat after a rough start to the week that
saw falling commodities prices and concerns about China's economic
growth weigh on shares.
The Bank of New York index of ADRs rose 0.9% to 134.72.
The International Monetary Fund said the markets overreacted to
recent lackluster Chinese data, and that the country's economy
remains on track to grow 8% this year.
The European index added 0.6% to 126.21.
Anheuser-Busch InBev NV (BUD, ABI.BT) and Mexico's Grupo Modelo
SAB (GPMCY, GMODELO.MX) finalized a settlement that resolves the
Justice Department's challenge to the beer makers' planned merger.
The parties on Friday submitted a proposed final settlement for
federal court approval in Washington, in which the companies agreed
to divest Modelo's entire U.S. business to Constellation Brands
Inc. (STZ). Shares of the Belgium-based brewer rose 1.7% to
$99.22.
However German software firm SAP AG (SAP, SAP.XE) dropped 4% to
$75.11 after reporting a 7% rise in first-quarter revenue, below
market expectations.
The Asian index increased 1.3% to 138.78.
Shares of Chinese telecommunications companies got a boost after
Morgan Stanley advised adding to this sector after an extremely
weak recent performance. The firm increased its Chinese telecom
weight from 30% to 35% in its Asian telecom portfolio, saying it
expects the sector's first-quarter results to be steady. Shares of
China Telecom Corp. (CHA, 0728.HK, K3ED.SG), Morgan Stanley's
preferred pick, rose 3.6% to $48.33.
Meanwhile, India's Wipro Ltd. (WIT, 507685.BY) Friday beat
estimates with a 17% rise in quarterly net profit. However, the
company forecast weak sales at its information-technology division,
indicating continuing soft demand for its software-outsourcing
services. The weak outlook weighed on shares, which fell 4.1% to
$8.13.
The Latin American index climbed 1.4% to 315.38 and the emerging
markets index jumped 1.8% to 273.63.
Financially troubled Mexican homebuilder Desarrolladora Homex
SAB (HXM, HOMEX.MX) said Friday it has struck a deal to sell its
stake in federal penitentiaries in the states of Morelos and
Chiapas to companies controlled by Mexican billionaire Carlos Slim
for four billion pesos ($327 million). Homex plans to use about
half of the proceeds for working capital, and the rest to prepay
debt. Shares surged 41% to $8.18.
-Write to Anna Prior at anna.prior@dowjones.com